An advance agreement is a contract between two or more parties that sets the terms of a future contract before it is drafted and signed. The agreement contains details about what the contract will regard and who the parties are that will sign the contract. It is intended to ensure that parties understand the proposed terms of the agreement, which streamlines the signing and closing process.
The purpose of the advance agreement is to make the signing and filing process quicker and easier for all contract parties involved. This ensures that contract initiatives can be met more quickly and easily.